WHAT is a short sale...and WHY should I care? Welcome to 2010, the year of the short sale! Unfortunately, in the past, lenders were making loans in amounts that ultimately became too difficult for borrowers to repay. Some of these borrowers may not be able to fulfill their mortgage obligations. When a borrower is no longer in a position to make the mortgage payments, is facing foreclosure and the current market value of the property--including escrow costs--is less than the loan on the property, the borrower may consider a short sale. In essence, a short sale is a sale transaction subject to a lender's approval in which the lender consents to a sale of a property for less than what is owed on the note and accepts the proceeds in full satisfaction of the loan amount. A short sale requires much paperwork and preparation on behalf of the borrower. Typically, before applying for a short sale, the seller must have a ready buyer and all the paper work prepared to present to the lender. Here are a few resources that can help you, whether a seller or buyer, with a short sale. * Tips For a Short Sale Seller *Tips For a Short Sale Buyer |